Humacyte's Stock Tumbles After Public Offering Announcement
Humacyte Inc. (HUMA) shares experienced a significant decline in Tuesday's after-hours trading session following the company's announcement of a proposed public offering. The biotech platform company plans to offer common stock in an underwritten public offering, with the underwriters having the option to purchase an additional 15% of the shares sold within 30 days. While pricing details remain undisclosed, Humacyte intends to utilize the net proceeds from the offering to support the commercialization of SYMVESS for vascular trauma and the development of other product candidates in its pipeline.
As of September 30, 2024, Humacyte held $71 million in cash, cash equivalents, and restricted cash. The company's stock price dropped by 21.39% in after-hours trading, reaching $2.26 at the time of publication on Tuesday. This decline can be attributed to investor concerns regarding the potential dilution of existing shares caused by the public offering.
Investors considering Humacyte stock should carefully evaluate various factors beyond valuation metrics and price action. These factors include the company's dividend policy, share buyback programs, and overall financial health. While buyback programs can act as a support for share prices, it's crucial to analyze the company's recent buyback activity and its potential impact on the stock's future performance.